CVC responds to Real Madrid threat of legal action

After Real Madrid officially announced it will sue CVC Capital Partners and one of its executives over an agreed EUR 2.7bn deal with Spain's La Liga, CVC claimed it has offered La Liga an operation that would "create value" for overall Spanish football, as well as align the interests of the clubs and that of the PE firm by sharing all the risks and benefits, Vozpopuli reported, citing a company announcement.

Through the deal, CVC intends to bring to Spanish football the successful experience accumulated in other countries and sports, the announcement said.

The report further noted that CVC, too, reserves the right to take any action it may be entitled to in defense of its rights. The PE firm termed the legal threat by Real Madrid as "disproportionate" and "baseless", according to the announcement.

CVC was not available for comment.

In a general meeting held on 10 August, the board of directors of football club Real Madrid agreed to initiate legal action to try and block the deal inked by CVC for a minority stake in Spanish league La Liga, as reported.

The board agreed to initiate both civil and criminal legal action against La Liga president Javier Tebas Medrano, CVC managing partner Javier de Jaime Guijarro, and against the CVC Capital Partners SICAV-FIS fund.

In addition, Real Madrid's board resolved to take "any legal action it considers appropriate" to annul and render ineffective any possible resolutions adopted by the La Liga Assembly, due to be held on 12 August 2021, in relation to the agreement between La Liga and CVC.

La Liga, the major football league in Spain, agreed a 10% stake sale to CVC at the beginning of August. The deal values La Liga at around EUR 24.2bn and would fund structural improvements while also offsetting some of the immediate impact from Covid-19.

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